From March 2, the ceiling on mortgage loans for the common people and end users will be abolished.

From March, Korea's real estate loan regulations will be completely lifted.

The Financial Services Commission decided to lift the regulation that limited the loan limit to 600 million won when ordinary people or end-users purchase a house in a regulated area from March 2nd.

According to this measure, the loan limit of up to 600 million won, which was applied when ordinary people and end-users take out a mortgage loan for the purpose of purchasing a house in a real estate regulated area, will be removed.

In addition, other regulations such as housing mortgage ratio (LTV) and total debt repayment ratio (DSR) will disappear.

The criteria for common people and end-users are those who meet all of the requirements of ▲combined annual income of married couples of 90 million won or less ▲head of a homeless household ▲housing price of 900 million won or less in speculative/permeable areas (however, 800 million won or less in the case of areas subject to adjustment).

As a result, foreign residents such as multicultural families have been able to purchase houses under the most advantageous conditions since 2019.

Recently, house prices have fallen significantly as interest rates have risen, but the Korean government is trying to boost the real estate market again by completely deregulating real estate.

In particular, as some banks say that interest rates on mortgage loans have dropped to the 3% range again, I think it would be good for foreign residents who have dreams of owning a home in Korea to make a specific plan to purchase a house.

 Eliminate multi-housing regulations

Multi-homed people who own multiple houses can also take out a mortgage loan for the purpose of purchasing a house in a regulated area. The regulation is maintained, so if a multi-homed person purchases an additional house in a regulated area, the mortgage rate (LTV) is 30% and the LTV in non-regulated areas is 60%.

Mortgage loans from housing rental and sales businesses, which were banned in all regions, are also allowed. The LTV for regulated areas is increased from 0% to 30%, and the LTV for non-regulated areas is expanded from 0% to 60%.

If a person who already owns a home can take out a mortgage loan for the purpose of stabilizing their livelihood, only up to 200 million won can be obtained, but this limit will also be abolished